New Delhi: Apollo Hospitals Enterprise Ltd is focusing on increasing revenue by over 30% for ₹25,000 crore over the next three years by expanding into non-metro cities and increasing occupancy rate at the enterprise level, said Dr Madhu Sasidhar, Chairman and Managing Director. Mint.
“We will continue to focus on our efficiency and ensuring we have good revenue quality, but I think there is still significant scope for growth, both in metros and tier 2 cities, with a focus on the latter,” Sasidhar said.
As more people take out health insurance across the country, the company says patients are choosing quality hospitals like Apollo.
“With the flight to quality and shift towards the organised sector, we plan to increase our overall occupancy rate to 70% with a focus on non-metro areas over the next few years,” Sasidhar said.
The company’s healthcare services segment reported 68% occupancy during the first quarter of fiscal year 2025. Of this figure, metropolitan areas have already reached an occupancy level of 70%, while non-metropolitan areas remain at the 65% level.
Apollo plans to expand by adding more beds and allocating ₹3,400 crore for this investment over the next three years. The company has expansion plans for cities like Gurugram, Hyderabad, Kolkata, Pune and Bengaluru. Apollo had 7,942 beds in the first quarter, of which 4,535 were in metros.
The company reported a consolidated net profit for the first quarter of ₹On Tuesday, the company posted an 83% year-over-year increase, driven by rising volumes in healthcare services. Operating revenue rose 15% to ₹5,085.6 crore. The results were in line with Bloomberg analysts’ estimates.
The company’s shares have gained more than 36% in the past year.
Volume growth
The group’s hospitals reported an 11% increase in inpatient volume and a 13% increase in new outpatient discharges. Apollo operates across three categories: healthcare services, diagnostics and retail health, and pharmacy distribution and digital health.
“Our growth has been across all the regions we serve and it has been truly volume driven. And we have seen that volume increase across all specialties. So we believe that this volume growth is good, healthy and sustainable,” Sasidhar added.
Earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 33% to ₹675 crores with a margin of 13.27%.
“In the first quarter of fiscal year 2025, we have seen significant growth and enhanced the reach of our retail operations,” Prathap C. Reddy, Chairman, Apollo Hospitals Group, said in a statement. “We remain committed to promoting excellence in healthcare, implementing innovative solutions and improving access to the best healthcare services across India and beyond.”
The healthcare services segment reported a 15% increase in revenues ₹2,637.3 crore during the quarter and a 24% increase in net income to ₹328 crores.
Apollo Health and Lifestyle Ltd, which offers primary care, diagnostics and specialist care, reported a loss of ₹10.2 crore, with revenues up 15% to ₹366 crores. HealthCo’s digital health and pharmacy distribution business posted a loss of Rs. ₹12.9 crore, with overall revenues increasing by 15% to ₹2,082 crores.
Apollo’s consolidated revenue from operations increased to Rs 19,059 crore in FY24.
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